Well, it looks like Fark Carlton is even more farked
Blues face $1 million black hole as sponsor pulls out
Published: May 10 2017 - 8:26PM
Carlton president Mark LoGiudice has denied the club could be forced to seek financial aid from the AFL following the impending withdrawal of its major sponsor CareerOne, the registered training organisation chaired by former AFL boss Andrew Demetriou.
In a disastrous turn of events for the Blues the club is facing a black hole of more than $1 million after a major client of CareerOne was suspended pending a Federal Government audit.
Demetriou told Fairfax Media he had personally called LoGiudice to inform him that CareerOne could not meet its 2017 sponsorship commitments. He also confirmed that CareerOne had advised Carlton to look for a new major sponsor.
The Carlton president has held talks with both Demetriou in recent days and has also met CareerOne managing director John Wall in a bid to clarify the financial situation. He said that for now the players would continue to wear the CareerOne logo on their jumpers along with co major sponsor Hyundai.
LoGiudice confirmed CareerOne – in the third year of a three-year arrangement with the Blues worth a total estimated $4.5 million – had not met all its 2017 financial commitments to the club and that Carlton was now searching for a new major sponsor.
But despite the current financial strain on the club LoGiudice said the Blues had not yet approached the AFL seeking an early dividend payment or any other form of financial assistance.
"Right now it's business as usual," said LoGiudice.
"We're confident we'll get paid. There has to be a little bit of give and take in all this. They [CareerOne] have been great supporters of ours and we will come to a resolution." Of the Blues' current bottom line and cash flow LoGiudice said: "It's going to be tight but it's not catastrophic. Of course it's tough but our business has improved dramatically in recent years. There's only five clubs out of 18 that actually make money."
Demetriou said the failure to meet its quarterly payment program with Carlton had come about "through
nothing CareerOne has done and I explained that to Mark".
He said the suspension of major client Careers Australia had seen CareerOne fail to meet its financial commitments but denied the company would cease trading.
"CareerOne and Carlton have enjoyed a great relationship," said Demetriou. "I understand better than anyone how tough it is for clubs when they're relying on certain payments so our managing director has advised Carlton to look for an alternative sponsor."
CareerOne is an offshoot of the financially troubled parent Acquire Learning, a vocational education broker which fell foul of government legislation in 2015 overhauling the student loans scheme due to concerns about some RTO providers and marketers.
CareerOne had also been the AFL's official provider in a deal in which Demetriou denied having any involvement. Demetriou added that contrary to previous reports he was not a director with Acquire Learning.